How to shop for health insurance for your company

Helen Darling, president of the National Business Group on Health, says monthly premiums are not the only consideration when it comes to choosing the right health plan for your work force. “What do your employees want, more out of their paycheck or more at the point of care?” she says.

Helen Darling, president of the National Business Group on Health, says monthly premiums are not the only consideration when it comes to choosing the right health plan for your work force. “What do your employees want, more out of their paycheck or more at the point of care?” she says.

Next, it’s time to investigate the many products available, to determine which option comes closest to your goal while meeting your budget.

A traditional indemnity plan provides the most robust coverage, with workers paying a percentage of medical bills after services are rendered. At the other end of the spectrum is a high-deductible, or “consumer driven” plan. In between are a variety of products, including HMOs, PPOs (preferred provider organizations), and EPOs (exclusive provider organizations), each of which comes with a number of deductible and co-pay options and varying limits on the providers workers can see.

“The more restrictions you put on people, the more control you have over your costs,” Fronstin said. “But again, it’s a trade off.”

“What do your employees want, more out of their paycheck or more at the point of care?” she said.

An indemnity plan comes with the highest premiums, but generally costs less out of pocket. A high deductible plan has the lowest premiums, but can mean high out-of-pocket expenses.

The composition of the workforce also may come into play. Younger, healthier workers might do better with a high-deductible plan while older workers with families and more health care needs might be better with a more comprehensive plan.

“But you can’t just assume that high-deductible plans are for younger workers and traditional plans are for older workers,” Fronstin said. “Older workers might be just as willing to take the risk because they are earning more.”